Yes, but then you know it's a game, so there's no self-deception that you're actually doing something meaningful. This realization thus gives the whole sportsmanship concept.
I have reasons to believe that many very successful athletes do have this self-deception.
But if you are truly smart, just telling people the truth, effectively explaining that their disfigured baby is ugly is so jarring to their coping mechanisms that they are browbeat to maintain the fiction of the beauty of the baby. This is also where power and abuse comes in. The ones who will destroy even the smartest people, often specifically because their intelligence threatens those on power and who are abusing humanity. Truly smart people simply have a hard time with lying to themselves though. That’s why they’re less happy in a world of lies, manipulation, and delusion. Truely smart people see the world dominated by the worst kind of narcissistic psychopaths, but they cannot actually let on to that fact or all the narcissistic psychopaths immediately turn on them in the most aggressive and intense way. It’s the nature of dealing with narcissistic psychopaths, and it leads to quite a bit of unhappiness if you are not also a narcissistic psychopath but have to live in the world you see for what it is. It’s probably the origin of the phrase “ignorance is bliss”; the cattle on the ranch are the happiest, until the day they are not at all.